Luton faces £310m economic impact and 3,700 job losses from Vauxhall plant closure

A council leader informed BBC Politics East that the impending closure of the Vauxhall facility in Luton is anticipated to result in approximately 3,700 job losses and an economic impact of £310 million for the local region. Stellantis, the parent company of Vauxhall, disclosed on Tuesday its intentions to shut down its van manufacturing plant in Bedfordshire, potentially affecting around 1,100 positions at the site. Hazel Simmons, who leads Luton Borough Council for the Labour party, characterized the announcement as “devastating news” for the community. She also stated that she had engaged with trade unions and intended to initiate discussions with Stellantis. The Department for Business and Trade commented that this period represents a “concerning time for the families of employees at Luton”. Stellantis, the conglomerate that also encompasses brands such as Citroen, Peugeot, and Fiat, indicated this week its decision to consolidate its electric van manufacturing operations at its alternative UK facility located in Ellesmere Port, Cheshire. According to the company, regulations implemented to accelerate the adoption of electric vehicles (EVs) in the UK partially influenced this choice. Simmons remarked: “It is devastating news for Luton – 1,100 employees told just before Christmas.” She conveyed that the council had conducted an “excellent meeting with the trade unions” and maintained hope that the factory might still continue operations in Luton. She further stated: “This is a consultation. In a proper consultation, there should be an opportunity to talk to the company to see what is possible. “We owe that to the employees to at least attempt this.” Simmons described the plant as being “at the heart of our town” and expressed that she could not “imagine a Luton without Vauxhall”. She also commented: “Luton has had this happen before. It used to have a hat industry which collapsed. We bounce back.” She continued: “I am not underestimating the effect this will have on the town. Our estimate is that it will have a £310m impact on the town. I can not under-estimate the job to be done – We will do anything as a council to work with the employees.” The Department for Business and Trade, while acknowledging the positive aspect of Stellantis’s investment in its Ellesmere Port facility, stated that “we know this will be a concerning time for the families of employees at Luton who may be affected”. The department further added: “We have a longstanding partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners on the next steps of their proposals.” It also mentioned: “The government is also backing the wider industry with over £300m to drive uptake of zero emission vehicles and £2bn to support the transition of domestic manufacturing.” BBC Politics East is scheduled for broadcast on Sunday, 17 November, at 10:00 GMT on BBC One in the East of England, and will subsequently be accessible on BBC iPlayer. Updates on news from Beds, Herts, and Bucks can be followed on BBC Sounds, Facebook, Instagram, and X. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content found on external websites. Information regarding its approach to external linking is available.